Assessment of Prospect Towards Cashless Society: A Case of Mobile Payments in Emerging Markets

  • Sirivalaya Kachathan Panyapiwat Institute of Management, Thailand
  • Yuvarinthorn Chaichotchuaung Panyapiwat Institute of Management, Thailand
Keywords: Cashless Society, Mobile Payments, Mobile Technology, Emerging Market

Abstract

Abstract
          Due to the rapid rise of communication innovation technologies, mobile payments system can be considered as one of the fast-growing business opportunities by both academics and practitioners. A case in point, financial technology has contributed dramatically to an increase of mobile payments in many sectors, e.g., banking, commerce, retails, as well as in many countries (both advanced markets and emerging markets). However, each country has its own growth rate pattern in mobile payments. The puzzle is why there are different growth rate patterns when such financial technology is now available and affordable in emerging markets. And why there is less adoption of mobile technology in emerging markets. The literature on mobile payments is a shortcoming in many aspects. A case in point, the Technology Acceptance Model (TAM) and its extent are too parsimonious for explaining adoption in technology across markets, especially in some emerging markets. This paper, thus, examines the progress toward a cashless society by focusing on a different pattern of growth of mobile payments and an adoption of mobile technology in emerging markets. This study proposes a new integrated and comprehensive model to explain such different growth rate pattern to fill the literature gap and contribute to the existing literature. To better explain and predict such different growth rate, a model should include more variables such as macroeconomic and social factors. For instance, digital inequality, personal affordability, infrastructure or digital policy. Nonetheless, the limitation of the proposed model will be a case of data availability.

Downloads

Download data is not yet available.

References

Aboelmaged, M. & Gebba, T. (2013). Mobile Banking Adoption: An Examination of Technology Acceptance Model and Theory of Planned Behavior. International. Journal of Business Research and Development, 2, 35-50.

Alalwan, A. A., Dwivedi, Y. K. & Williams, M. D. (2016). Customers’ Intention and Adoption of Telebanking in Jordan. Information Systems Management, 33(2), 154-178.

Badi, H. Baltagi. (2008). Econometric Analysis of Panel Data. Chichester, England: John Wiley & Sons Ltd.

Bank of Canada. (2018). Is a Cashless Society Problematic? Retrieved April 25, 2020, from https://www.bankofcanada.ca/wp-content/uploads/2018/10/sdp2018-12.pdf

Bank of Thailand. (2020). Payment Data Indicators. Retrieved April 25, 2020, from https:// www.bot.or.th/Thai/Statistics/ PaymentSystems/Pages/StatPaymentTransactions.aspx [in Thai]

Barclay, C. & Evan, W. D. (2008). Rethinking the Digital Divide: Towards a Path of Digital Effectiveness. Hawaii International Conference on System Sciences, Proceeding of the 41st Annual, 7-10 Jan 2008. Waikoloa, HI, USA: IEEE.

Bayero, M. A. (2015). Effects of Cashless Economy Policy on Financial Inclusion in Nigeria: An Exploratory Study. Procedia - Social and Behavioral Sciences, 172, 49-56.

Brown, S. A. & Venkatesh, V. (2005). Model of adoption of technology in households: A baseline model test and extension incorporating household life cycle. MIS Quarterly, 29(4), 399-426.

Chan, S. & Lu, M. (2004). Understanding internet banking adoption and user behavior: A Hong Kong perspective. Journal of Global Information Management & Computer Security, 12(3), 185-204.

Davis, Fred. (1989). Perceived Usefulness, Perceived Ease of Use, and User Acceptance of Information Technology. MIS Quarterly, 13(3), 319-339.

Garcia-Swartz, D., Hahn, R. & Layne-Farrar, A. (2006). The Move Toward a Cashless Society: A Closer Look at Payment Instrument Economics. Review of Network Economics, 5, 175-198.

Greene, W. H. (2008). Econometric Analysis (6th ed.). Upper Saddle River, N. J. Prentice Hall.

Gupta, B., Dasgupta, S. & Gupta, A. (2008). Adoption of ICT in a Government Organization in a Developing Country: AnEmpirical Study. Journal of Strategic Information Systems, 17(2), 140-154.

Hanafizadeh, P. & Khedmatgozar, H. R. (2012). The mediating role of the dimensions of the perceived risk in the effect of customers’ awareness on the adoption of internet banking in Iran. Electronic Commerce Research, 12(2), 151-175.

Jocevski, M., Ghezzi, A. & Arvidsson, N. (2020). Exploring the growth challenge of mobile payment platforms: A business model perspective. Electronic Commerce Research and Applications, 40(March–April 2020), 100908.

Laukkanen, T. (2016) Consumer Adoption versus Rejection Decisions in Seemingly Similar Service Innovations: The Case of the Internet and Mobile Banking. Journal of Business Research, 69(7), 2433-2439.

Lin, H. F. (2011). An Empirical Investigation of Mobile Banking Adoption: The Effect of Innovation Attributes and Knowledge-based Trust. International Journal of Information Management, 3, 252-260.

Mehta, S. (1999). Strategic Implications of an Emerging Cashless Society in the US. Electronic Markets, 9(1-2), 93-103.

Nelloh, L., Santoso, A. & Slamet, M. (2019). Will Users Keep Using Mobile Payment? It Depends on Trust and Cognitive Perspectives. Procedia Computer Science, 161, 1156-1164.

Octabriyantiningtyas, D., Suryani, E. & Jatmiko, A. R. (2019). Modeling Customer Satisfaction with the Service Quality of E-Money in Increasing Profit of PT. Telekomunikasi Indonesia. Procedia Computer Science, 161, 943-950.

OECD. (2001). Understanding the Digital Divide. Retrieved April 25, 2020, from http://www. oecd.org/dataoecd/38/57/1888451.pdf

Olusola, M., Oludele, A., Chibueze, O. & Osundina, S. (2013). Cashless Society: Drive's and Challenges in Nigeria. International Journal of Information Sciences and Techniques, 3, 1-11.

Reistad, D. L. (1967). The coming cashless society. Business Horizons, 10(3), 23-32. Robinson, L., Shelia R. C., Hiroshi, O., Anabel, Q. H., Gustavo, M., Wenhong, C., Jeremy S, Timothy, M. H. & Michael, J. S. (2015). Digital inequalities and why they matter. Information, Communication & Society, 18(5), 569-582.

Safeena, R. (2012). Technoogy Adoption and Indian Consumers: Study on Mobile Banking. International Journal of Computer Theory and Engineering, 4(6), 1020-1024.

Selhofer, H. & Husing, T. (2002). “The Digital Divide Index. A Measure Of Social Inequalities In The Adoption Of ICT”. In Wrycza, S. (Ed.), the 10th European Conference on Information Systems ECIS 2002 - Information Systems and the Future of the Digital Economy (pp. 1273-1286). 6-8 June 2002. Gdansk, Poland: ECIS.

Statista.com. (2020). Digital Payments report 2020. Retrieved April 25, 2020, from https:// www.statista.com/study/41122/fintech-report-digital-payments/

Stiakakis, E., Kariotellis, P. & Vlachopoulou, M. (2009). From the digital divide to digital inequality: A secondary research in the European Union. In Sideridis, A. B. & Patrikakis, C. Z. (Eds.), Third International Conference, e-Democracy 2009 (pp. 43-55). 23-25 September 2009. Athens, Greece: Springer Nature.

Swartz, G., Hahn, R. & Layne-Farrar, A. (2006). The Economics of a Cashless Society: An Analysis of the Costs and Benefits of Payment Instruments. Review of Network Economics, 5(2), 175-198.

Tavilla, E. (2015) Transit mobile payments: Driving consumer experience and adoption. Boston, MA: Federal Reserve Bank of Boston.

Ting, H., Yacob, Y., Liew, L. & Lau, W. M. (2016). Intention to Use Mobile Payment System: A Case of Developing Market by Ethnicity. Procedia - Social and Behavioral Sciences, 224, 368-375.

Turoff, M. & Mitroff, I. (1975). A case study of assessment applied to the Cashless Society concept. Technological Forecasting and Social Change, 7, 317-325.

Zhang, T., Jahromi, M. F. & Kizildag, M. (2018). Value co-creation in a sharing economy: the end of price wars? International Journal of Hospitality Management, 71, 51-58.

Zhou, T. (2011). An Empirical Examination of Initial Trust in Mobile Banking. Internet Research, 21(5), 527-540.

Published
2020-06-30